With the success of discount and coupon programs, you may be tempted to start a dining discount card program in your area. The process of starting a card program is not very difficult and is an ideal business idea for people who want to work from home. You'll need to be able to reach out to restaurant owners and convince them to participate before you even start marketing to consumers. Choose a mix of restaurants to make the card more appealing to potential diners.

Starting the Business

1. Write a plan for the business. In the plan, describe the discount dining card program, detailing what it entails, what area it serves and who you expect will participate. If you plan on hiring people to work with you, describe the positions in the plan. Describe any similar competing programs in your region and lay out a plan for marketing as well as for raising funds to get the business off of the ground.

2. Explore your funding options. You may ask friends or family to invest in the new discount dining program or use money of your own. Depending on your credit history, you may be able to receive a loan from a bank. In some cases, taking out a loan can be risky, as you may have to put up personal property, such as your home or car, as collateral.

3. Consult a lawyer and discuss the possible structure of the business. If you are the only person working on the discount card program, you may wish to structure it as a sole proprietorship, meaning you will not need to file any additional paperwork. You may also choose to structure the business as a corporation or limited liability corporation, which would mean you would not be personally responsible for the business's losses.

4. Create an original name for the discount dining card and the business, such as "Diner's Delight" or "Dine on a Dime." Register the business name with your state.

5. Hire an accountant to help you sort through any tax issues. You may need to apply for a Employer Identification Number from the IRS or apply for a permit and license from your state or city.

6. Come up with a price for the card. The price should be appealing to customers but should also allow you to eventually turn a profit. Any research you have done on similar card programs comes in handy here. Look at how much those cards charge and what they offer. Come up with an amount based on that information.

7. Determine what the card will offer customers. For example, a diner can save 20 percent off of a check at a participating restaurant. Another option is to have the card provide a buy one entree, receive one free deal. Ask friends and other people in your area what they would like from a discount card.

8. Draft a list of terms and conditions for card holders with the help of your lawyer. The card may only be valid for a set length of time, for example. If you want the ability to cancel the program at any time, include that in the terms. Also include details on how often the card may be used at any restaurant, as well as details about what a card holder may do if he wishes to cancel the card. Determine whether or not you will allow refunds.

Promote the Card

1. Contact restaurants in your area and inform them of the card program. Explain the card to them in detail, including the deals it offers customers. Refer to research you've done when writing your business plan that suggests that these kinds of cards help bring in new customers or retain old customers.

2. Write up a contract for restaurants that agree to participate. Your lawyer can help you with the wording for the contract. Include the length of participation, any cost of participation for the restaurant, what the program entails and terms about breaking the contract. Sign the contract and have the restaurant owners sign as well.

3. Create a website for the card program. Purchase a domain for the website and hosting if you like. You can also use a free service, such as WordPress or Blogger, to build your site. Include a form on the website so that customers can sign up online. Clearly post the legal terms and conditions of the card on the website. Allow people to pay via credit card or using a service such as PayPal.

4. Build social media profiles for the dining discount program so that people can keep up with the program and can give you feedback when they feel it necessary.

Create the Cards

1. Design a simple layout for the card using imaging software or even a business card template on word processing software. The printed cards should include the name and logo, as well as the diner's name, their membership number and the date the card expires.

2. Send the design to be printed on plastic cards. The cards can have a barcode or magnetic strip on the back, so restaurants can scan or swipe the card at the register to take off the discount.

3. Create a spreadsheet or database to keep track of each customer and the card information. You will need to keep track of the name and address of customers, the amount they paid for the card and when it expires. You don't need to track how often they use the card.

4. Mail the printed cards to the members. Type up a letter welcoming each member to the program. Include a full explanation of the card's benefits in the letter, as well as a complete list of participating restaurants. Also include the terms and conditions with each card. Encourage the new members to get in touch with you with any concerns or suggestions they have.

Tip

A few months after the card program is up and running, ask for feedback from participating restaurants to gauge use of the cards.

About the Author

Based in Pennsylvania, Emily Weller has been writing professionally since 2007, when she began writing theater reviews Off-Off Broadway productions. Since then, she has written for TheNest, ModernMom and Rhode Island Home and Design magazine, among others. Weller attended CUNY/Brooklyn college and Temple University.